Mill and uniform pricing: a comparison.

In order to examine the effects of uniform pricing compared to mill pricing for a firm serving a fixed market area, the writers present an analysis of profit, price, output, and welfare under mill and uniform pricing in a monopolistic spatial market with nonlinear demand, a general consumer distribu...

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Detalles Bibliográficos
Publicado en:Journal of Regional Science Vol. 36; pp. 129 - 144
Autores principales: Cheung, Francis K., Wang, Xinghe
Formato: Artículo
Publicado: Wiley-Blackwell February 1996
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: Mill and uniform pricing: a comparison.
      aug:
        au:
          Cheung, Francis K.
          Wang, Xinghe
      su:
        Monopolies
        Mathematical models of economics
        Mathematical models of pricing
        Economic demand
        Industrial location
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        subj:
          Monopolies
          Mathematical models of economics
          Mathematical models of pricing
          Economic demand
          Industrial location
      ab: In order to examine the effects of uniform pricing compared to mill pricing for a firm serving a fixed market area, the writers present an analysis of profit, price, output, and welfare under mill and uniform pricing in a monopolistic spatial market with nonlinear demand, a general consumer distribution function, and a general transportation cost function. They demonstrate that if demand is convex (concave), then the optimal uniform price less the average unit transportation cost is lower (higher) than the optimal mill price, output under uniform pricing is lower (higher) than output under mill pricing, and welfare under uniform pricing is lower (higher) than welfare under mill pricing, given other respective conditions are satisfied.
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    language: English
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